Re:No More Layoffs with a Payoff: It's Time to Freeze CEO Sa...
by triceratops on Saturday November 02, 2024 @10:05AM
(#42026465)
> What would have happened to Kodak or Blockbuster if they had a CEO with enough grit to cut the workforce and pivot the businesses before they collapsed?
The CEO would have made less money for a few years while the turnaround was in progress. If it succeeded, the stock would take off and they'd profit handsomely. I don't see the problem with these incentives.
Let's remember again, the proposal from the article:
"freeze CEO pay and stock options and prevent stock sales for a year following any layoffs that exceed 5% of the workforce"
What you don't want is a CEO dumping the stock when it goes up after the layoff. That's a conflict of interest. And if the company needs to do layoffs to conserve cash, the CEO and rest of the leadership taking pay cuts will also help the shareholders.
The CEO would have made less money for a few years while the turnaround was in progress. If it succeeded, the stock would take off and they'd profit handsomely. I don't see the problem with these incentives.
Let's remember again, the proposal from the article:
"freeze CEO pay and stock options and prevent stock sales for a year following any layoffs that exceed 5% of the workforce"
What you don't want is a CEO dumping the stock when it goes up after the layoff. That's a conflict of interest. And if the company needs to do layoffs to conserve cash, the CEO and rest of the leadership taking pay cuts will also help the shareholders.